Low EMI – Budgeting Tips To Pay Your Low EMIs On Time

EMI is crucial to be paid on time to improve your CIBIL score. Boost your credit score by paying emi on time and avoid penalty or legal consequences.

 

“Congratulations on Availing a Diwali Personal Loan from Loan Singh!”

If you are the recipient of this email from our highly efficient operations team, then you deserve a pat on the back. With most millennials struggling to manage their finances, it is not advisable to apply for any type of credit – whether secured or unsecured. We receive hundreds of applications daily; with a majority of those applications getting rejected. The reasons are aplenty.

Some have a poor credit score thanks to past defaults with lenders. Some barely have any money left to spend for yourself; EMIs are a far-off thing. Remember that availing a personal loan is a serious responsibility. The Diwali personal loan you availed is for the purpose of celebration. You wouldn’t want to avail a loan and then keep worrying about how you can pay off the EMIs. That would make Diwali a bittersweet experience. For those who have their applications rejected, fret not! We are putting this piece up for you as a reference point to understand why budgeting is important to enjoy a financially stress-free life.

Click here, to understand all about a personal loan in India

Why Do We Ned Financial Budgeting?

Budgeting allows you to set-up a spending plan, which in turn ensures that you always have the money to spend on important things. Budgeting allows you to stay out of debt if you maintain discipline towards it. Budgeting does not mean you become a miser and try to save every single penny. A good and well-structured budget provides you with a great opportunity to experience a comfortable lifestyle with reduced financial stress.

You obviously cannot increase your monthly salary at will. It comes with hard work and patience. So, in case your monthly income is the same for a certain period, you will need to limit your expenses to be able to save more. Add to that life’s challenges such as marriage, maintenance or purchase of a used car, family get-togethers, medical emergencies, etc. Rise in prices due to inflation doesn’t help either. Whether you’re a low-income salaried individual or take home a fat paycheck, you still need to follow a budget. Fixed incomes and ambitious financial goals make a budget most essential.

Maintaining a budget also does not mean that you don’t have to apply for a loan. A personal loan is a good option when you need quick funds, and that too, without any hassles or time delay. Let’s say that if you are the only working member in your family, it would be hard for you to improve your home without a personal loan. A loan will be accompanied by EMIs that need to be paid each month. This EMI will show on the expense side of your budget.

Simply making a list of expenses versus income, and jotting down numbers under each column daily won’t give you financial freedom. You have to analyze and implement the budget in your financial decisions. A budget will indicate warnings when you move away from the financial plan. Not having a well-set budget will either leave you without a plan or without benchmarks to compare to previous month’s savings.

Managing Budget Wisely

Budgeting is a process of creating a plan to spend your hard-earned money. A plan, that you so painstakingly create, should contain fields such as income, expense, bills, EMI, and investments. Budgeting helps you determine, in advance, whether you will have enough money to do the things you need or would like to do. It balances your expenses and income. If the expense side is dominant, then that indicates debt.

Consider a scenario where you are earning well but are unable to save due to your spending habits. You have no clue where your salary is used-up and hence are forced to borrow cash from friends, or family, to pay for bills and EMIs. When you are on the brink of such financial mess, it’s time to get a hold of the situation and start creating a budget. Millennials nowadays don’t include ‘budget’ in their vocabulary. Living month on month, they consider budgeting to be a control mechanism rather than a byword for financial leeway. This is certainly not true.

A budget simply helps you to spend smartly. It helps you to focus on your hard-earned money. It prevents you to overspend on less important things. It channelizes your resources to areas that are higher on your priority list. With India, firmly enveloped in digitalization, you have the ease and liberty of spending via credit card, as well. Preparing a budget requires you to visualize not only the past spending behavior but also look at your current status. Your budget then helps you to achieve a stable and stress-free financial future. Let’s take a look at ways by which you can make a better use of your budget.

Attaining Financial Goals

A budget helps you to get an overall picture of your finances. The goal is to collect all possible information pertaining to bank statements (slips, receipts), credit card information (payment statements) and salary slips. Then find the average amount you spend monthly, and break this down into segments, such as fuel, gas, entertainment, household expenses, insurance, debts paid, medical expenses and end-savings per month.

Try to balance the income with the expense. This will show if you are in surplus (more income less expense), or in deficit. Setting timelines for your goals is also a good practice. For example, you can start a small fund to save for traveling abroad and keep a target of 6 months to do so. You can then judge how much you need to allocate every month towards the fund.

Overcoming Bad Habits

Overuse of credit cards can lead to serious repercussions on your budget. Sticking to your budget also involves spending via credit card at a minimum and only when necessary. It seems much more fun to go on a shopping spree over Amazon’s Diwali Sale rather than to save now for a dream holiday, same time next year. Sure, the offer is now and it has to be availed-of but do you really need to make that expense? Do you really need a cable connection plan that includes 60-70 channels or 25-30 pair of heels? Good budgeting is important to help you re-think your spending habits and focus on your financial goals.

EMI is crucial to be paid on time to improve your CIBIL score. Boost your credit score by paying emi on time and avoid penalty or legal consequences.

Finding Financial Peace

A good view of your financials will help you stay focused on wealth building. You need to save to have a grand wedding for your children or be secure during your retirement. Budget is important to eliminate debts, which once done will help you to redirect that money towards your savings.

If you don’t have a budget in place, you will not be able to afford a new flat screen TV, a swanky new car or jewelry for your spouse. Budgeting is mostly avoided by a salaried individual due to work or other priorities. It is a great way to save you the grief of overspending and falling into debt. It does not stop you from enjoying your life, rather ensures that you enjoy your life in a planned way.

Tracking Your Money

Budgeting helps you keep track of your expenses from personal loan EMIs, credit card bill statements, ATM receipts, rent receipts, monthly utility bills, monthly shopping bill, restaurant bill, dividend receipts, insurance policies, etc. The usual rule to follow towards budgeting is the 50-30-20 rule. According to this rule, 50% of your income should be used to spend towards essentials such as food, clothing, rent, fuel, cable, etc. 30% of your income to be spent on discretionary things such as dining out, online shopping, festival shopping, etc. The balance 20% is to be saved.

Build An Emergency Fund

Emergencies can crop-up any time. It could be a job layoff, illness, accident, death in the family, bad divorce, bad investment decisions, etc. A well-structured budget can help you have the savings needed to prepare for an emergency. If it is possible, try preparing an emergency fund out of the budget. This spare money can also help you get out of a financial debt, should the need arise. Align the emergency fund to your budget and start with small savings.

Approach Credit With Caution

You can shirk any credit-related worry if you adhere to your budget. Payments of your personal loan EMIs and credit card bills will be a breeze because a budget will ensure you have money in the bank. You can use your budget to clear-off a personal loan ahead of tenure. Following a strict budget over a period of time will build a pattern that will tell you how sooner you will be clearing your loan and that will give you a chance to plan what you will do with the money you otherwise would have spent on an EMI. A budget helps you set-up short-term and long-term goals such as planning a vacation, purchase a second-hand car, or plan for your child’s education.

Click here, to understand everything about credit score in India

Online Diwali Loan

One of Loan Singh’s unique offerings is to provide an online personal loan to salaried individuals who have never availed credit before. To cater to the long list of Diwali expenses, it is obvious that you need a source of funds to celebrate the festival in all its pomp and fervor. Personal loans are unsecured loans that are availed to meet these exact fund requirements. As it is an unsecured loan, it does not require any collateral.

Loan Singh looks at your creditworthiness to determine if you can pay the loan EMIs regularly, or not. The idea is to not strain you with credit but to make sure that your salary and savings permit you to avail credit. Your credit report acts like a gauge for Loan Singh. It shows how prompt you have been in your previous credit responsibilities and how trustworthy you are. Loan Singh is perfect because of

No collateral – Having no collateral gives personal loan an advantage over a secured loan. Even if you do not own any fixed assets, you can at still get funds from Loan Singh.

Multiple purposes – A personal loan can be availed for a number of purposes such as shopping for Diwali, purchasing household appliances, electronic gadgets, purchasing gold, holiday travel, home improvement, job relocation, medical expenses, marriage, etc.

Personal Loan Benefits in India

Loan Singh’s hassle-free process and quick approval personal loans are perfect for salaried individuals like you who are too busy to even get a rest. The attractive EMIs and interest rates at Loan Singh, make personal loans affordable to repay back. Add luxury to your mundane lives without putting too much strain on your finances. Your dreams are our dreams. We help turn your dreams into reality. Brand new appliances and electronic products are also needed in case you are relocating due to your job. The job relocation personal loan at Loan Singh helps cover exactly this.

Loan Singh’s emi calculator will help you understand how much you need to pay in order to clear your consumer durable loan. The calculator only needs your intending loan amount and tenure for telling you how much you need to pay each month. A personal loan can be availed between Rs. 50,000 and Rs. 10 Lakhs.

Another huge benefit you have with a Loan Singh online personal loan is that you have the freedom to choose where you want to spend your loan amount on. You can apply for a shopping loan and utilize the cash to spend on an Amazon, some on Flipkart or some on Snapdeal. Unlike so many ecommerce websites that let you gain discounts for possessing a debit card or points of a particular finance provider, Loan Singh’s personal loan can be utilized to be spent on the website you want and on the product you want to spend on.

About Loan Singh

Loan Singh is a digital lending platform that prides in providing online personal finance loan or unsecured personal loan to salaried individuals. You can apply for quick funds as an easy emergency loan which is not a bank loan. We provide a loan with the best personal loan interest rates. The instant funds, or instant loans, are loans between Rs. 50,000 and Rs.10,00,000 taken for purposes such as:

You can calculate your easy EMIs using our personal loan EMI calculator. We accept bank statement and PAN, for quick loan approval. A bad credit score or credit report errors can lead to personal loan rejection. The ‘Loan Singh Finance Blog’ is one of the best finance blogs in India. Loan Singh is a product of Seynse Technologies Pvt Ltd and is a partner to the Airtel Online Store.

Loan Singh’s Online Presence

Loan Singh is not an anonymous digital platform. We are present on almost all leading social media platforms. All you need to do is look for us. You can find us on Loan Singh Facebook, Loan Singh Twitter, Loan Singh Google+, Loan Singh YouTube, Loan Singh Pinterest, Loan Singh Instagram, Loan Singh LinkedIn, Loan Singh Blogarama, Loan Singh Google Business, Loan Singh Medium, Loan Singh Reddit, Loan Singh Tumblr, Loan Singh Scoop It, Loan Singh Feed, Loan Singh Storify, Loan Singh Digg and Loan Singh Blogger.

EMI is crucial to be paid on time to improve your CIBIL score. Boost your credit score by paying emi on time and avoid penalty or legal consequences.

 

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